How to Trade in Shooting Star Candlestick Patterns?
The shooting star
candle is a common charting method used by many traders that uses
Japanese candlesticks. This article will cover the shooting star
reversal pattern in depth?and how to use it to trade forex.
WHAT DOES A SHOOTING STAR CANDLESTICK PATTERN MEAN?
A single candle bearish reversal pattern known as a shooting star
formation. It develops when a price is pushed higher and then
immediately rejected lower, leaving a long wick to the upside in its
wake. The candle’s long wick should occupy at least half of its overall
length (see illustration below).
Additionally, the closing price must be close to the candle’s low
point. As you can see, because prices were unable to maintain their
higher trade, this results in an overall bearish structure.The
Inverted Hammer pattern exhibits a similar structure, but it corresponds
to a bullish reversal signal rather than a bearish reversal signal. At a
support level, pullback, or the bottom of a downtrend, this candlestick
pattern is frequently visible.